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Mar 18, 2013 2:00pm PDT
to a standstill. sales of new cars and home appliances plunged. in september, president gerald ford asked congress to join him in a battle against inflation. my first priority is to work with you to bring inflation under control. inflation is domestic enemy number one. schoumacher: the federal reserve was also committed to fighting inflation and, under the chairmanship of arthur burns, held to a policy of keeping money tight. robert c. holland served on the fed's policy-making board of governors. when the federal reserve wants to fight inflation, wh it does is provide funds -- basic funds we call reserves, funds to the banking system -- less fast than bank customers are asking for money and credit to finance the kind of spending they're trying to do in this inflationary period. that means banks have to hold back a bit in terms of the amount they lend, may have to sell some assets, sell some securities to adjust. that puts a little more restraint on borrowers, they don't get quite as much money. banks typically charge higher interest rates. those higher interest rates lead borrowers and investors o
Search Results 0 to 0 of about 1